Osei Kyei-Mensah-Bonsu, the majority leader, has defended the recently implemented 10% withholding tax on gambling and lottery profits.
The Suame MP vehemently supported the Ghana Revenue Authority’s (GRA) decision to levy a 10% withholding tax on bet and lottery profits during an interview on Kumasi’s Angel FM.
He asserted that the rise of betting businesses has made young people in the country feel lazy.
“I don’t believe in betting. I don’t believe in luck. I believe in hard work and sweat to get money. Let’s be serious. As for me, I’m against betting coming into the country. I don’t support it because it doesn’t encourage hard work.”
“As an individual, I don’t engage in the lottery because I don’t believe in that. I don’t believe in luck. Work hard so God will bless it.”
On August 7, the Ghana Revenue Authority (GRA) declared that starting on August 15, 2023, a 10% withholding tax will be applied to all gross gaming earnings.
The previous 15% Value Added Tax (VAT) rate on each stake will no longer be applied, according to the GRA. Instead, withholding tax will be imposed on earnings that are collected after each victory.
The Income Tax Act 2023 (No. 2), Act 1094, has been amended, according to the GRA, and the new policy is in conformity with that change.
Gaming enterprises who disregard the new policy would be subject to fines, including having their licenses revoked, according to Edward Gyamerah, Commissioner of the Domestic Tax Revenue Division of the GRA.
“Come August 15, we expect that when you are making the payments, you will withhold 10 percent to the Ghana Revenue Authority (GRA). As you have been appointed as withholding agents, the obligation is on you to withhold. If you fail to do that, with the interactions we had with you and with the support of the gaming commission, you can be assured that your licenses will be withdrawn,” the Commissioner for the Domestic Tax Revenue Division at GRA cautioned.
